Professional Documents
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Predictable science?
Economic downturn
Our environment
What can we learn from science?
Instead they
± Deny; Deteriorate & Die
Discuss the Red Queen theory
Identify the meaning of a µJanus¶ trend
List the eight Janus trends/paradoxes
Explain how what is good is also bad
Explain the difference between
: - Evolutionary change
: - Revolutionary change
Red Queen Race
± Species have to "run" (evolve) in order to stay in the same place
Red Queen Effect can be especially deleterious
when new rivals enter the market
± Incumbents struggle to improve efficiencies
± Upstarts and new entrants in existing markets
Capture a niche
Create new ones
± Rules of the games are changed irrevocably
Strategists & Marketers must continually evolve
± To create change
± To respond to change
Janus was the Roman god of
± Beginnings and endings
± Gates and doors
Always represented with a double-faced head
± Each face pointed in opposite direction
Transitions from
± Primitive life to civilization
± Countryside and city
± Peace and war
± Past and future
Prosperity v. Poverty
Free Markets v. Protectionism
Population Growth v. Population Shortages
Global Bliss v. Global Gloom
Power of MNCs v. Fragility of MNCs
Global Media Reach v. Media Fragmentation
Enhanced v. Diminished Service
Age of Brands v. Anti-Brand Era
Growth in wealth
± More than 7.7 million globally hold more than U.S.
$1 million
± 236,000 millionaires in China, 61,000 in India
Poverty and despair
± 2.7 billion people survive on less than $2 daily
± (average income) 20% of world¶s wealthiest
population was 30 times higher than poorest 20%
± It was 82 times higher!
Huge rise in elective Preventable diseases that
surgery are three biggest killers of
children
± Facelifts
± Measles
± µBody¶ enhancements ± Malaria
± Liposuction ± Diarrhea
± Regular botox 30 million children are not
treatments immunized
6 million children under
age 5 die of hunger every
year
Free markets
± WTO has 147 members representing 90% of world trade
± Average tariff has fallen from 40% to less than 4% since
1950
± Over past decade freight and communication cost have
declined sharply
Growing protectionism
± EU agricultural tariffs remain at 20% restricting growth of
poorest countries whose exports are 70% agriculture
± United States enacts ³safeguard quotas´ against Chinese
textiles
± Ongoing row regarding Boeing and Airbus subsidies
between United States and the European Union
± World¶s population has doubled from 3 billion to 6 billion in past 40
years
± By 2050
World population expected to reach 9 billion
World¶s 50 poorest countries will triple in population
± Five countries account for approximately one-half of the world¶s
population
± Population of five largest cities exceeded or almost matched majority
of world¶s nations (including geographically large nations such as
Australia and Canada)
± 27 potential future members of European Union will experience 6%
decrease in population through 2050
± Current EU members will also experience declines
± Canada¶s Alberta province despite economic boom lacks enough
workers
Global bliss
± Cultures and countries realizing
Greater similarities than differences
More to gain by cooperation than conflict
± Global brands
± Globally integrated production processes
Multiple sources of origin on products
± Advances in logistics have lowered containerized transportation
cost
± Time boundaries all but eliminated ± Internet: Cell phones
± Regulatory boundaries fall as nations seek to increase trade
Global gloom
± Many people feel
Globalization is a bad thing
Majority of the world¶s population is worse off
Undermines the environment etc
± Anti-globalization protests accompany most major meetings of
political and business leaders
± Diluting of local cultures by global brands
u
± Of 100 largest economies 51 are corporations, 49 are nation states
± Wal-Mart revenues > most economies of eastern Europe
± MNCs¶ powers increases due to mergers and acquisitions
± Strong emphasis on R&D
± Aggressive intellectual property protection
± Value chain exploitation can make smaller companies more
competitive
± Vulnerable to ³brand companies´
Companies that outsource all activities except marketing of brand
More flexible, no overhead cost or investment in major infrastructure
± Susceptible to activities of so-called ³hidden champions´
Small-to-medium-sized firms with strong local presence
± Lack of adequate laws protecting intellectual property rights
Patents
Copyright protection
Worldwide media reach
± ³Buying´new from CNN, SKY, BBC, extends smaller stations reach
± Global availability
Fragmentation of media and audiences
± Advertising in video games
Advertisers pay large sums for product placement
± ³U-commerce´
Commerce that is ubiquitous, universal, unique, and in unison with
recipient
M (or mobile)-Media advertisements to cell phones and other portable
devices
± Internet
³Podcasting´ anyone can be a broadcaster
YouTube permits anyone to upload video and others to download content
MySpace is a communications tool that also allows upload of video and
download of content
Enhanced service
± Singapore Airlines
Pampers business class passengers
± FedEx
Guaranteed delivery
Diminished service
± Demise of operated assisted calls in favor of direct dial
± ATMs in place of bank clerks
± Online statement retrieval in place of paper notification
± Customers don¶t always want delightful service²they want solutions
± Customers want
Speed
Efficiency
control
The age of brands
± Brand equity²value of a brand name
brand recognition = brand equity
± Brand equity in not-for-profit firms
Red Cross
Amnesty International ³Free speech is
Habitat for Humanity meaningless if the
The era of the anti-brand commercial
cacophony has risen
± Anti-globalization movement to the point where no
± Dilution of local culture one can hear you.´
± Exploitation of foreign workers (No Logo: Naomi Klein)
Evolutionary Change Revolutionary Change
Standardisation of Differentiation of
strategic approaches strategic approaches
Centralised Decentralised
organisational organisational
design design
Exploitation of Exploration for
innovations innovation
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